Responsible Infrastructure

Sustainability Report 2018-19 Responsible Infrastructure

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Table of Contents

1. About the Report 01

2. Message from the Chairman & 02

3. Organisational Overview 03

4. Our Approach to Sustainability 08

5. Engineering Highlights 11

6. Our Employees 13

7. Health and Safety 19

8. Economic Performance 23

9. Environmental Performance 25

10. CoP: UN CEO Water Mandate 29 11. Community Sustainability 32

12. Our Sustainability Performance 34

13. Independent Assurance Statement 36 14. GRI Content Index 38

About the Report

Responsible Infrastructure 2018-19 is the 10th Annual Sustainability Report of Hindustan Construction Company Ltd. This report has been prepared in accordance with the GRI Standards: Core Option. The report presents management disclosure and performance highlights on the key sustainability issues material to the company. The reporting period is the financial year ending on March 31, 2019. GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report.

This report includes the 11th

The report has undergone limited assurance (as per AA 1000 AS standard) by Thinkthrough Consulting Pvt. Ltd. (TTC), an independent professional services firm.

Our reporting boundary is inclusive of all HCC projects in progress during the reporting year. Any exceptions in the boundary with respect to specific performance disclosures are clearly mentioned within the report.

We will strive to continue enhancing our sustainability disclosures going ahead. Any feedback and queries are welcome, and may be directed to:

Aditya Patwardhan Assistant General Manager Corporate Social Responsibility [email protected]

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Message from the Chairman & Managing Director

Dear Reader,

few companies in the country to achieve the landmark of 10 years of consistent reporting. The 2018-19 report tracks our performance across the triple bottom-line, including environmental responsibility, stakeholder engagement and business sustainability.

This report is inclusive of our 11th consecutive Communication on Progress (COP) on the U.N. Global e Global Reporting Initiative (GRI) Standards and is independently assured by a third party agency.

We have adopted construction practices that are sustainable, ensure prudent use of natural resources, minimize the impact on the environment and preserve the eco-system. Sustainability is embedded in the core values of our work as we continue to innovate and apply next-gen practices to execute some of the largest projects in the country.

the Prime Minister Shri Narendra Modi. These projects include the 4.9 km Bogibeel Rail-cum-Road Bridge across the Brahmaputra in Assam - Hydroelectric Project in Jammu & Kashmir and the 110MW Pare Hydroelectric Project in Arunachal Pradesh.

Over the years, our in-house water stewardship programme has helped enhance the sustainability of our operations. With improved water use efficiency across operations, accompanied by a community- based water conservation intervention which conserved more than 390 million litres of water, HCC has maintained Water Positive status for the fifth year consecutively. Beside efficient water usage in our operations, we also ensure that communities in the vicinity have better access to water.

In the year 2018-19, our Company has crossed several key milestones despite the challenging economic conditions in the country. We have taken several steps this year to strengthen the company, both financially and operationally. With focus on its core operations and strengths; emphasis is given to improve cost and operational efficiencies. We have also started the process of focused de-leveraging with a much stronger sense of purpose to create a more sustainable financial foundati

As we complete a decade of sustainability reporting, I look forward to the next decade of continued opportunities to shape sustainability in our industry.

Ajit Gulabchand Chairman and Managing Director

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Organisational Overview

Founded by Industrialist Seth Walchand Hirachand in 1926, HCC Ltd, headquartered in Mumbai, has constructed a large number - , eneration capacities, more than 3800 lane kilometres of expressways and highways, over 335 km of complex tunnelling of which over 183 km are in the Himalayan region and over 365 major bridges. Today, HCC Ltd. serves the infrastructure sectors of transportation, power and water.

Landmark projects executed by HCC include the Bogibeel Bridge -cum-road steel bridge; Kishanganga Hydro Power Project Largest EPC contract of NHPC; Bandra Worli Sea Link − cable-stayed bridge; Kudankulam Nuclear Power Plant and largest light water reactors and the Kolkata Metro

HCC is the first construction company in India to implement ISO certified Quality, Occupational Health & Safety and Environment Management systems. HCC has also achieved the fastest implementation of SAP- ERP across all its project locations, some even at record-breaking altitudes of 11,000 feet in the Himalayan ranges.

The Company has invested in the early adaption of advanced engineering equipment, new and

2019, is Rs 18,554 crore ($2.7 billion). The company has registered revenue of Rs 4,341 crore ($ 634 million) and operating profit of Rs. 533.39 crore during FY 2018-19.

Committed to responsibility are integral principles of the business goals. Our initiatives encompass Disaster Relief, Water Sustainability and Community Initiatives. Disaster Relief forms a significant area of focus at by way of being a founder member of Disaster Resource Network of India. HCCs emergency response teams volunteered during a number of natural disasters in India and abroad. The Company is also engaged in national and international forums, such as the World Economic Forum, The Energy and Resources Institute, the World Business Council for Sustainable Development etc.

Recognizing the emerging water crisis and with a view to make water sustainability a corporate priority, HCC is first Indian company Water Mandate. HCC has demonstrated its water consciousness by implementing a series of rigorous and improved water management practices at its project sites.

Since 2010, all ility reports are made as per the Global Reporting Initiative .

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The Board of Directors at HCC

Ajit Gulabchand Chairman & Managing Director Arjun Dhawan Group CEO & Whole-time Director Shalaka Gulabchand Dhawan Whole-time Director (upto July 31, 2019) Rajas R. Doshi Independent Director Ram P. Gandhi Independent Director Sharad M. Kulkarni Independent Director Anil C. Singhvi Independent Director Harsha Bangari Nominee Director (upto February 6, 2019) Dr. Omkar Goswami Independent Director N. R. Acharyulu Non-Executive Director Samuel Joseph Nominee Director (w.e.f. March 26, 2019) Santosh Janakiram Additional Director - Independent (w.e.f. June 17, 2019) Mahendra Singh Mehta Additional Director - Independent (w.e.f. June 17, 2019) Further details of our corporate governance are available in the Annual Report FY 2018-19 on our website: https://hccindia.com/uploads//reports/0_37250200_1566995792_HCC_Annual_Report_2018-19.pdf Our Equity Share is listed on the Bombay Stock Exchange (BSE) as well as the National Stock Exchange of India Limited (NSE).

HCC Clients:

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Strategic International Associations

Vision

To be the Industry Leader and a market driven engineering construction company renowned for excellence, quality, performance and reliability in all types of construction.

Mission

  Constantly assess the needs, realities and values of the customer and set goals to satisfy their needs  Continually innovate, develop and adopt state-of-the-art technologies, methodologies and materials to deliver customer satisfaction through better, faster and cheaper construction  Continually aspire to deliver higher standards of safety, occupational health and environment protection at work  Continually develop and maintain a robust supply chain that will help us deliver value to the customer on time and to expectations  Continually improve the competence of our people through education and by inculcating strict principles of conduct and responsibility, high standards of performance, and respect for individuals and their work.  Organize work for effectiveness resources to the future  To build a reputation of trust and reliability amongst our customers, other stakeholders and society.

Awards and Recognitions

2019:

 'Rail Analysis India Awards 2019' to HCC Ltd as Winner of the "Achievement of Tunnelling" award  'Corporate BBS Award' to HCC Ltd as 1st Runner up in the Construction Category under Forum of Behavioural Safety  'Ministry of Road Transport and Highways (MoRTH) - Gold Award' to Baharampore Farakka Highways Ltd (Shibpur Toll Plaza) for Excellence in Toll Plaza Management  'Ministry of Road Transport and Highways (MoRTH) - Champions Award' to Baharampore Farakka Highways Ltd (Chandermore Toll Plaza) for Excellence in Toll Plaza Management  'Ministry of Road Transport and Highways (MoRTH) - Champions Award' to Farakka Raiganj Highways Ltd (Laxmipur Toll Plaza) for Excellence in Toll Plaza Management

2018:

 'HSE Excellence Award 2018' to HCC as Winner of the HSE Excellence Construction Sector of the year  'Construction Times Award' to Kishanganga Hydro Power Project for Best Executed Hydro Power Project of the year  'Dun & Bradstreet - Winner of Infra Awards 2018' to Kishanganga Hydro Power Project under Power category

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Memberships

HCC is represented by our CMD Mr. Ajit Gulabchand at several national and global, governmental, departmental and industries forums. Some of these key memberships are:

1. Member, CII National Council 2. Member, CII Associations Council 3. Member, CII Task Force on Ease of Doing Business 2018-19 4. Member, CII National Committee Meeting on Infrastructure & Smart Cities 2018-19 5. Member of Governor's Steering Board of the Infrastructure and Urban Development (IU) Community at the World Economic Forum (WEF) 6. Member of Disaster Resource Partnership Board, IU, WEF 7. Member of Steering Board, Future of Urban Development Services, IU, WEF 8. Member of Steering Board, Partnering Against Corruption Initiative, WEF 9. Member of Steering Board, Future of Construction, WEF 10. Member of the Private Sector Alliance for Disaster Resilient Societies (ARISE), United Nations International Strategy for Disaster Risk Reduction (UNISDR) 11. Member of Board of Trustees New Cities Foundation 12. 13. Sig 14.

Mr. Arjun Dhawan, Director & Group Chief Executive officer of HCC is the member of the CII Infrastructure Council.

Advocacy

Mr. Ajit Gulabchand, Chairman and Managing Director has delivered numerous key note addresses and participated in several prestigious and internationally recognized sustainable development events. Some of his key participations in various global forums in FY 2018-19 are listed below:

20-22 April World Economic Forum, Community of Chairmen, Annual Retreat- 2018

7-8 June Swiss Economic Forum 2018, Interlaken

21-25 Jan World Economic Forum Annual Meeting 2019, Davos

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Our Approach to Sustainability

Management Approach

As a responsible construction and infrastructure major in India, HCC is aware of its business responsibility. Our business vision has been closely woven around the triple bottom line approach. Environmental responsibility and social commitment are taken into account in addition to our financial performance as we pursue sustainable growth. We have adopted construction practices that are sustainable, ensure prudent use of natural resources, minimize the impact on the environment and preserve the eco-system. Sustainability is embedded in the core values of our work as we continue to innovate and apply next-gen practices to execute some of the largest projects in the country.

Stakeholder Engagement:

At HCC, we identified key stakeholder groups considering the present and potential impacts of our business on them and vice versa. We continually engage all our stakeholder groups through various modes of communication. Our annual sustainability report is one of the tools to inform our various initiatives and progress to the stakeholders. We strive to align the report contents to the interest of our stakeholders.

Our assessment of sustainability issues is primarily shaped by the nature of our activities, degree of impact on business and stakeholder expectations. For the purpose of adoption of the GRI Standards, we reviewed our materiality and identification of stakeholders through a workshop with the Below is the outcome that reveals our stakeholders and the modes of engagement with them.

Stakeholders Modes of engagement Customers/Clients  One-on-one engagement with the client  Formalised Customer Feedback Systems Suppliers/Subcontractors  Annual SRA program and periodic vendor meets  One-on-one engagements  Pre-assessment and feedback system Employees  Regular interactions and communications  HCC Newsletters and E&C Connect mailers  Employee Intranet  Structured performance management systems  Training programs Investors and Shareholders  Quarterly analyst meets and regular communications  AGMs and EGMs  Publications, Annual Report, Sustainability Report  Corporate Website  Investors' and shareholders' grievances committee JV Partners  On-going partner management approach  Sustainable partnerships in strategic business sectors  Effective communication channels Local Communities  Interactions with local groups and individuals around the projects  Needs assessment  Communications with local government bodies

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Material Topics

The material topics that have the impact on the business in light of principles set by GRI standards are as follows: Economic Performance Occupational Health and Safety Procurement Practices Training and Education Materials Diversity and Equal Opportunity Energy Equal Remuneration for Women and Men Water Non-discrimination Emissions Child Labour Effluents and Waste Local Communities Employment Compliance Labour Management Relations

Formalized Customer Feedback System

At HCC, customer s feedback is obtained on vari through a standard questionnaire every quarter, which are analysed to arrive at corrective measures. In case of project obtaining Customer Satisfaction Index (CSI) below 3 in any of the quarters, the Management Representative and the concerned Project Manager interact with the customer to have a better understanding of their expectations. The corrective actions to mitigate the causes of dissatisfaction are finalised and implemented.

Customer Satisfaction Index (average)

5 4.08 3.82 3.95 3.9 4 3.67 3.61

0 2013-14 2014-15 2015-16 2016-17 2017-18 2018-19

Business Development:

As an essential part of the business development process, we interact with clients of the upcoming projects during pre-qualification, as well as at various stages of the bidding cycle, in order to understand their expectations. It includes understanding project requirements, visiting the site to ascertain project execution feasibility, construction methodology, logistics, risks and mitigation measures. If needed, strategic partnership is formed with international contractors for a new technology or for sharing the expertise required to execute large and technically complex projects. A approach has been adopted for bid specific interactions with the joint venture partners.

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Over the last 5 years, HCC has aligned itself to the changing needs of Indian Infrastructure by focusing on transport and energy sectors. Our order book as on 31st March 2019 is INR 185.54 billion.

Risk Management

HCC has a well-documented and robust risk management framework under the provisions of Companies Act, 2013. This is executed through the Risk Management Committee that has been delegated with the authority by the Board to review and monitor the implementation of the Risk Management Policy. It deals with enterprise and project level risks, which are further subdivided into operational, financial, contractual, procurement and human resources related risks. Supply Chain

suppliers/stakeholders that are spread across the country. Labour contractors, technology/equipment providers, joint venture partners and raw material suppliers are an integral part of our supply chain with cement, aggregates, steel being the most important raw materials for us. HCC believes in creating sustainable partnerships with all its Business Partners, who play a vital role in helping us deliver quality products and services safely, ethically and responsibly.

HCC has taken steps to procure goods and services from local & small producers, including communities surrounding their place of work. More than 75% of major raw materials are procured through Indian suppliers. Items like aggregates, sand etc are procured locally. Also the general stores material required for workmen and officers camps is procured locally which impacts the local market in positive way.

HCC, suppliers to collaborate effectively with HCC by providing customized access for meaningful information exchange over the Internet.

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Engineering Highlights

With growing sustainability challenges, at HCC, we focus on R&D with greater rigor on costs of materials, process evolution and refinement, enhancement of construction output, quality and continual efficiency improvements.

Construction Research and Development (CR&D)

CR&D is being carried out with the objectives of continual efficiency enhancement, reductions in material costs, process development, improving speed, enhancement of construction quality and sustainability. These efforts are undertaken through interdisciplinary engineering within the organization and in technical collaboration with vendors, consultants, research organizations and academia sharing similar interests.

Some of the CR&D efforts are listed below: i. Optimizing concrete ingredients with specific focus on reducing cement content, reducing carbon footprint and making Portland cement concrete a sustainable choice: This is partly achieved using less energy intensive chemical additives, enhanced use of alternate cementing materials (like fly ash, slag, micro silica, ultra-fine slag etc.) and optimal quality assurance planning. ii. Controlled quarrying and crushing of aggregates for construction with an objective of reducing wastage and environmental impact. iii. Through the use of the Philosophy of materials integrated design to maximize utilization of locally available construction materials. iv. Development of alternate equivalent to lessen the consumption of expensive construction materials through use of less expensive substitutes from industrial wastes in close coordination with specialized vendors. v. Speedier Construction technologies such as, roller compacted concrete (RCC) for the construction of dams. vi. Alternate feasible structural designs (ex. alternate pavement design) with objectives of improvement in the specifications, enhanced design life, reduced use of natural construction materials and improved sustainability. vii. Productivity enhancement achieved through innovative method of pumping of concrete for a distance of 2.4 km.

Technological marvels

Efforts made towards bringing in latest and advanced technologies at various projects:

1) Incremental Launching of 125 M long Steel Trusses for Rail-cum-Road Bridge: HCC has used the method of incremental (continuous) launching of ten fully welded steel spans of 125 meters each for construction of rail-cum-road bridge over river Bramhaputra. 2) Composite Pavement Construction: HCC is using various pavement design methods, construction machineries and alternate materials to reduce the construction time and materials to increase the life of the pavements. Demonstration stretches have been constructed at NH34 project, while designs are being developed for the Indo-Nepal border road project and Numaligarh-Jorhat road project.

3) Use of 3D Analysis for Optimized Design: Optimized design of the powerhouse complex for the Tehri Pumped Storage Project is being done by using FLAC-3D Software in close coordination with experts from France and Canada for optimizing the rock supports. 4) Continuous forming shutter for tunnel lining: Technology of continuous forming shutter for tunnel lining is now being increasingly used. (VPHEP, TVHEP & Tehri PSP)

Our Employees

Management Approach

HCC believes in competitive, yet sustainable growth. Therefore, our focus always remains on development of Human Capital which we believe can make all the difference for our organisation and help achieve our objectives. We give prime importance to employee development, wellbeing, facilitate their growth. Safeguarding human rights (equal opportunity & non-discrimination), health & safety are also core to our human resource practices. We have adopted policies and instituted several initiatives to this end.

Quality of life of the employees particularly at the sites, developing talent, building people skills, career progression, employee engagement initiatives, providing dignity at work, respect for diversity, communicating to employees through Newsletters, E-News etc are some of the methods we adopt to create a best-in-class and motivated work force.

Attracting Talent

HCC has a streamlined and efficient recruitment and selection process to find and attract the best talent, thereby creating competitive strength and strategic advantage for the Company. Considering that our project sites are often located in remote and difficult geographical locations, we ensure that our employees deployed at these projects are provided with high quality facilities, as well as a safe and secure living environment.

Employee Wellbeing

The safety, health and well-being of all our employees and workers are given the utmost priority in all our operations and activities. We conduct safety and health related trainings and awareness drives at all our project sites for our employees, contract workers and members of the surrounding communities. The safety performance across all project sites is monitored centrally at the corporate office on a continual basis and is reported to the senior management.

Skills Development

Learning and Development continues to be an important aspect of human resources strategy. Skill development not only enhances the personal growth of our employees but is also key to realizing our vision of being an industry leader renowned for excellence, quality, performance and reliability in engineering construction. A wide range of technical and managerial training programs, catering to specific needs of various business sectors, functions and individual employees, are conducted through both internal and external trainers.

Graduate and management trainees are provided with focussed trainings through a combination of classroom and on-the-job training as well as special assignments. These training programs, together with coaching and mentoring provided by seniors, help them transition smoothly into corporate life within HCC. We also focus on training the workers; including sub-contract and PRW staff, in order to upgrade their skills, creating a safe working environment and contributing to their continued employability.

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Performance Management System

The Performance Management System at HCC provides a platform to employees for a transparent discussion and feedback on performance and development on an annual basis. To foster an environment of meritocracy and team work the rewards are linked to individual, functional / business and organizational performance.

Zero Tolerance to Discrimination

As a responsible employer, HCC is committed to fair labour practices and are in compliance with all applicable laws. We follow a zero-tolerance approach on the issues of employee discrimination, bonded labour, child labour, corruption and unethical conduct.

Contract Workmen

Responsibility towards all our contract workmen is an important element of our responsible infrastructure philosophy. HCC remain committed to ensuring their health, safety, overall well-being, continual learning and development, equal opportunity and upholding all facets of human rights as per the law of the land.

Employment

human resources focus continued to be on improving efficiencies and reducing cost. While the trend of attrition continued, it remained within industry standard. At the same time, we continued to hire people with the right skill sets in order to ensure efficient, timely and high quality execution of our projects. We also ensured that existing benefits to our employees continue to remain available despite challenging business environment.

As of 31st March, 2019, our total workforce strength (HCC Engineering & Construction business) was 19732. This comprised of 1386 Senior, Middle and Junior Management Officers, 55 Trainees, Apprentices and Short-term Contracts, as well as 18291 Workmen (on project rolls, sub-contracted and piece rate workers).

25000 As on 01 Apil -18 21069 As on 31-Mar-19 19488 19732 20000 18291

15000

10000

5000 1581 1441 0 Officers Workmen Total

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A snapshot of our employment data, as of 31st March 2019 is presented below:

Social Performance Key Performance Indicators1 FY 2018-19 Total Workforce Workforce by Level of Employment Officers (Senior, Middle, Junior Management) 1386 Others (Short Term Contracts, Trainees etc.) 55 Workmen (Excluding FTC) 18291 Workforce by Type of Contract Permanent Employees 5108 Sub-contract 4946 Piece-rate Workers 8237 Fixed-term Contract 100 Workforce by Gender (excluding Workmen) Male 1384 Female 57

The details of new employee hires and attrition in FY 2018-19 are presented in the table below: Employees left Employees left Number Number of Numbers of

Voluntarily in Involuntarily in FY of new new hires, new hires, who FY18-19 18-19 (attrition rate) hires in who left left involuntarily (attrition rate) FY 18-19 voluntarily in FY 18-19 in FY 18-19 By gender

Male 466 (32.16%) 49 (3.38%) 384 69 1 Female 9 (14.52%) 5 (8.06%) 2 - - By Age groups < 30 years 172 (51.50%) 1 (0.30%) 191 26 -

30-50 years 260 (28.70%) 21 (2.32%) 161 39 1

>50 years 43 (15.87%) 32 (11.81%) 34 4 -

workmen (both permanent and temporary) at offices and project sites have the right of collective bargaining. While the workers on our rolls are fully unionized, the terms and conditions of the workmen on the sub-contractor rolls and piece rate workers are bargained by their respective sub-contractors/PRWs.

1All workforce figures are as of 31 March 2019 and pertain to all active project sites of the Company; HCC has pan-India presence and does not report regional breakdown; None of our project sites fall within areas defined as insecure.

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Reward and Recognition

HCC has adopted a Recognition and Reward Policy that governs our approach to recognizing and rewarding the outstanding performance and contributions of individual employees and teams. The key areas in which performance is recognized under this policy are  Project performance (physical progress, financial and safety performance),  Order acquisition,  Promoting safety culture at projects, and  Claims & Collections.

The policy also aims at institutionalizing the c

The recognition is given on an annual basis in the Project Managers conference and the half yearly and annual awards in the E&C Business Conference. This recognition scheme has resulted in continuous improvement in our productivity and performance.

Employee Intranet

HCC has launched the closer through constant communication and interaction. The primary objective of HomePort is to keep everyone updated on a real time basis about our diverse team, our projects, our policies & procedures and our plans. In short, to bring home to all that is important and relevant company wide. experiences and provide suggestions, which will go a long way in building a stronger organisation and a more involved team.

Employee Benefits

Our full time employees avail of the following benefits during their association with us:  Medical Insurance Scheme  Superannuation Scheme/ Pension Scheme  Executive Health check-up facility (Senior and Middle Management)  Annual Performance linked incentive (Senior and Middle Management) and incentives for project sites.  Additional allowance/ benefits for employees posted in difficult locations

All the above benefits are subject to company policies. The Provident Fund benefit is also extended to our contractual employees in addition to our full time staff.

Diversity and Equal Opportunity

Respect for gender diversity and equal opportunity is intrinsic to our philosophy and culture, including equal remuneration for men and women. In this regard, we go beyond legal requirements and follow global best practices, including the UN Global Compact Principles of Labour Standards and Human Rights. All our operations and contracts meet the appropriate human rights criteria as required by the applicable laws of the land. We have adopted a Policy on Prevention & Redressal of Sexual Harassment, in line with the statutory requirements. All 386 new hires have undergone awareness

201-3, 401-2, 404-3, 405-1, 412-2 17 training on Human rights and Prevention of Sexual Harassment. We have well defined systems in place for addressing any grievances.

HCC remains committed to gender diversity and all our hiring and career progression activities, employee remuneration and benefits, initiatives and engagements are non-discriminatory. While the nature of our business and remote locations of our project sites does not allow for a suitable working environment for women employees, our corporate office employs around 60 women employees. There were 25 women employee participants in training programs conducted in FY 2018-19, amounting to 86 hours of training. The table below shows the ratio of basic salary and remuneration of women to men for each employee category:

Ratio of Basic Salary and Remuneration of Women to Men

Senior Management 1

Junior and Middle Management 1

At HCC, all the women employees are entitled to maternity leave. The table below shows the data pertaining to the return and retention of women employees post maternity leave:

Return to Work after Parental Leave

Number of Employees Entitled (Women) 57

Number of Employees Availed and Returned 1

Number of Retentions 12 Months After Return -

Employee Training and Development

HCC strives to provide the best learning opportunities to the employees and workers. A variety of technical and functional programs catering to specific needs of various project sites, functional areas and individual development needs were conducted during 2018-19.

Key training sessions conducted for officers include: • Equipment Management • Essentials, Trends & Issues in Concrete Construction • MS Project 2010 • Advanced Materials Management • Project Planning & Control • Safety Officers Development Program • GST Implementation Programs (Specific to functional departments like Accounts, Contracts, Legal, Engineering Management, Equipment & Internal Audit perspective) • Improving Ergonomics in Office workspace • Behaviour Based Safety • Workplace Ergonomics • Environment Protection at site • Housekeeping & Site Logistics • Construction Safety

Key training sessions conducted for workers during the reporting year include:

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• Basic Construction Safety • Defensive Driving • Operation and maintenance of various construction equipment • Construction Methodology modules

The table below shows average employee training man-hours received by employees in FY 2018-19:

Average Employee Training Man-hours by Level of Employment

Officers 5.60

Trainees 26.53

Workers 6.48

Average Employee Training Man-hours by Gender (Trainees included)*

Officers (Male) 6.47

Officers (Female) 1.26 *We do not discriminate between male and female employees for training

Out of the programs organised for officers, some of them are central programs conducted at Head Office. These are primarily Functional & Technical Skills Development Programs and some of Health & Safety programs. Highlights of these programs are given below:

Functional, Technical and Safety Training Programs

To enhance functional & technical skills, training programs like

Issues in Concrete C Head Office for the officers working in those functions at head office and project sites. These programs were designed to equip the officers to play effective role in project sites and make a positive impact in the day-to-day functioning. These programs were conducted by a team of internal and external experts.

A specialized program on "Improving Ergonomics in Office workspace" was conducted for the officers working at Head Office where the nature of work involves sitting at desk for a prolonged period of time. The objective of the program was to create awareness on this topic and help them plan and make small additions to their office routine that can help them to adopt a healthier lifestyle.

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Health and Safety

Management Approach

HCC is committed for effective Integrated Management System (IMS) at all levels for a process oriented approach. This approach, we believe, continually leads us to business process improvements, resulting in improved profitability, employee engagement, reduction in wastages, customer satisfaction, as well as improvement in our Quality and HSE parameters.

Safety is much more important than convenience and it is perhaps the most effective insurance policy. At HCC, paramount importance is given to safety at every step from planning to execution. The company advocates efforts to achieve zero accident at every project site. Several initiatives have been undertaken over the years to improve the safety performance at HCC including mandatory induction and training programmes, tool box talks, use of personal protective equipment etc., as well as adoption of a zero tolerance policy.

Proactive Safety Observation Program (PSOP)

The PSOP round consists of a cross functional team walking through the project site on a weekly basis for safety observations. Project Managers also attend PSOP round at least once in a month to show their commitment for safety to other site team members. During PSOP rounds, members of the team identify unsafe act, unsafe condition, and unsafe practices existing at the site. Subsequently, observations are uploaded in online PSOP portal detailing actions required to address the issues found. The responsibility is given to section heads for taking corrective and preventive actions as well as their close out.

The observations of severity rating 5 are mailed to responsible person and an auto generated reminder escalation mail for close out of the observation is sent to the senior management.

Daily Safety Reporting

HCC has initiated an online portal on daily safety reporting. This portal provides project wise consolidation of safety performance disclosures such as unsafe act, unsafe condition, near miss, first aid cases, tool box talks, trainings, penalty enforced etc. This consolidation with respect to the target is forwarded to the senior management through automatically generated mail. This helps to make site personnel accountable and hence more involved to achieve goal i.e. .

Safety related Trainings:

To enhance the competency, training sessions are conducted through the expert in their field on subjects like basic construction safety, behaviour based safety, environmental protection at the project site, workplace ergonomics, housekeeping, defensive driving. This yields enhanced skills and thus the productivity of the workmen.

Monthly Safety Theme:

The training sessions based on the monthly safety theme is conducted by the internal resources. Project Manager and senior staff, employees, workmen, client and sub-contractors at each project site are included in these sessions.

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List of Monthly Safety Themes at projects during FY 2018-19

Month Safety Theme of the Month

April Behaviour Based Safety (BBS)

May Proactive Safety Observation Program (PSOP) awareness

June Environment Aspect & Impact at construction site

July Emergency Preparedness & Response

August Waste Management & Resource Conservation

September Fall Prevention & Protection

October Mechanical operational safety

November Behaviour Based Safety (BBS)

December Pollution Prevention & Control

January Road Safety

February Environment Monitoring & Assessment at construction

March Electrical Safety

Safety Statistics:

Safety Statistics Man Hours Worked (Millions) 60.81 Injuries 09 Fatalities 02 Lost Days 12067 Frequency Rate 0.19

Severity Rate 210.92

Frequency Severity Index 0.09

Total Case Incident Rate (TCIR) 0.08

Frequency Rate(FR) TCIR-Total Case Incident Rate# 0.86 1.2 1 HCC 0.65 1 0.8 0.53 Bechtel 0.6 0.8 Petrofac 0.24 0.4 0.22 0.2 0.35 0.6 Saiphem 0.2 0.19 0.4 Worley

0.2 Samsung

12 13 14 15 16 17

18 18 19

------

- 0 Hyundai

FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY FY 18 FY FY 17 FY 2015 2016 2017

#Benchmarking for TCIR was done after analysis of sustainability reports of international companies

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Behaviour Based Safety Programme:

Behaviour Based Safety (BBS) , essentially the unsafe acts. BBS begins with briefing sessions focusing on all activities at the work place. Observed unsafe and safe acts are communicated to the workmen. The unsafe acts are repeatedly highlighted for correction and safe acts are encouraged. BBS also discusses the unsafe conditions created due to the unsafe acts of others. Collecting information about at-risk behaviour helps the management determine the root cause of behaviour and develop a plan for preventive actions.

Safety Achievements and Client Appreciation:

• HCC has won the 1st runner up award in the Construction Category of the Corporate BBS Awards organized by Forum of Behavioural Safety in New Delhi on January 28,2019

• DMRC CC-66 Project (Dwarka-Najafgarh Metro Corridor) has set a record of completing 2 million safe man hours during the period September 20, 2016 till February 28, 2018. • HSE Summit & Awards 2018 organised by Synnex. • Corporation of India Ltd. During the 48th National Safety Day celebration on March 04, 2019 held at the project site. - HCC won the Project Safety Award- 2018 in the group C category - -up in category-A and Batching plant, crushing plant, sand washing plant & Concrete Testing Lab the runner-up in the Project Housekeeping Awards in Group B (Auxiliary Plant & Shop Floor). - In the individual category, 07 HCC employees were awarded the Near Miss Accident Award for timely reporting the near misses and taking corrective actions to prevent recurrence of a similar incident at the site. • HCC won the Suraksha Puraskar instituted by the National Safety Council for its Rajasthan Atomic Power Project Unit 7 & 8. The award was conferred for implementing Occupational Safety and Health (OSH) management system and procedures effectively thereby achieving very good performance in OSH.

HIV/AIDS education and awareness

In recognition of the serious impact of HIV/AIDS on migrant workers, HCC formed an HIV/AIDS workplace policy that focuses on educating and raising HIV/AIDS awareness amongst migrant HIV/AIDS awareness is now embedded in tool box talks to reach maximum workforce. The Company observes World AIDS Day every year on 1st December. Events are conducted with employee participation that involves pinning of red ribbons, awareness sessions, rallies etc. Posters and material given by NACO/ ILO and the state-level AIDS control societies are prominently displayed.

Quality Observation and Training (QOT)

At HCC, Quality Observation Training (QOT) is adopted in which QC team along with other cross functional team members conduct quality inspection of construction activities periodically and corrective actions are taken to ensure conformance to quality standards. This helps to control the non

22 conformances in execution of work. The project wise consolidation of QOT is analysed and reported to the management.

Communication with workers:

At HCC, Project Manager tool box talk (PM TBT) has been introduced this year. The Project Manager conducts a tool box talk every week to make the workers aware about safety implementation at site. The outcome of these PM TBT is overviewed by management for feedback and suggestions of improvisation. This facilitates as a tool for rapport building and understanding of the issues hindering the smooth functioning, in a better way.

Economic Performance

Management Approach

As one of the leading Indian construction company, HCC has been exposed to the vagaries of the external business environment faced by the industry in India. The Company has continuously re- crafted its strategic positioning and calibrated its business objectives in line with the evolving business environment.

HCC has taken several steps this year to strengthen the company, both financially and operationally. Raising capital, including via monetisation of assets, has been imperative to safeguard the sustainability of the company.

Over the course of the year, HCC commissioned several projects of national importance, three of which, viz. Kishanganga Hydroelectric Power Project, Bogibeel Road-cum-Rail Bridge and Pare Hydro Electric Power Project, were inaugurated by Prime Minister of India, Narendra Modi.

Financial Review

HCC reported turnover and EBITDA of Rs.4,341 crore and Rs.533 crore, respectively, in FY18-19, as against Rs.4,575 crore and Rs.644 crore, respectively, in FY17- at Rs.18,554 crore as of March 31, 2019.

The company accounted for an exceptional loss of Rs.2,400 crore during FY19 which was largely due -year net loss of Rs.1,962 crore despite healthy margins in its core business.

The Highlights of the financial performance for 2018-19 are: – Turnover of Rs.4,341 crore vs. Rs.4,575 crore – Net Loss of Rs.1,962 crore vs. Net Profit of Rs.78 crore, owing to exceptional loss of Rs.2,400 crore – Gross debt has reduced by Rs.227 crore year-on-year to Rs.3,749 crore as of March 31, 2019

During the last quarter, HCC signed terms with a consortium of investors led by BlackRock under which HCC will receive a consideration of Rs.1,750 crore for the transfer of its beneficial interest and rights in an identified portfolio of arbitration awards & claims to a special purpose vehicle (SPV) controlled by the investors. The proceeds will be used to prepay debt of Rs.1,250 crore, while the balance Rs.500 crore will be made available to fund working capital and business growth.

HCC offered Rights Issues to shareholders and raised Rs. 497.58 crore. Company received applications worth Rs. 551.38 crore pursuant to its Rights Issue of equity shares. Valid applications were received for 110.74% of the aggregate issue of up to 49,75,76,833 equity shares of face value

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Figures in INR Crore 2018-19 Total Income 4459.13 Construction Cost (including materials/other expenses) 3413.93 Employee Cost 393.68 EBITDA (excluding other income) 533.39 EBITDA margins (excluding other Income) 0.123 Finance Cost 698.91 Depreciation 144.53 Exceptional Items 2400.3 Profit before Tax (2592.22) Tax (630.47) Profit after Tax (1961.75) Other comprehensive income (after Tax) (9.48) Total comprehensive income (after Tax) (1971.23)

Economic Performance - Key Performance Disclosures (FY 2018-19) Value (Million INR) Economic Value Generated 43409.97 Revenues 43409.97 Economic Value Distributed 70858.19 Operating Costs 59141.68 Employee Benefits and Wages 3936.78 Payment to Providers of Capital 7156.39 Payments to Government (Indian) 622.81 Economic Value Retained (27448.22)

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Environmental Performance

Management Approach

HCC has imbibed the principle of optimal utilization of critical natural resources in our material procurement practice. This includes reuse of materials, minimizing waste generation, sourcing locally to the extent possible to decrease avoidable long-distance transport. We are also cognizant of our energy consumption and aim to optimize it by adoption of energy efficient practices through the use of latest technology and engineering innovations.

on-site teams remain sensitive to the local ecology, landforms and communities and take several proactive initiatives to conserve the local environment.

Project Environment Management Plan (PEMP)

Environment management system embedded into HCC -tendering process up to completion of the project. In a pre-tendering process project specific Environment Management Plan (EMP) are assessed which help to reduce the environmental related risk. EMP consist study of Environmental compliances, risks, significant impacts of project activities and cost to be incurred to mitigate the same.

At the time of start up of any project, during the mobilization phase, the detailed Project Environment Management plan (PEMP) is being prepared. This PEMP details out various control measures to minimize environment impact by addressing various issues like muck disposal, spill prevention, resource conservation, waste management, pollution prevention, tree plantation and Environment monitoring. To check the effectiveness of PEMP implementation at site, day to day inspection, environment monitoring, internal and external audits are conducted at regular intervals.

Resource Optimization Initiatives

HCC has adopted centralised purchase system to cater all the projects spread across the country. We strive to adhere to our aim of maximising local purchases, which helps us to get the supply of major raw materials from the nearest terminals of the suppliers. Aggregate, sand etc are procured locally at project sites, as well as general stores material required for workmen and officers camps, which impacts the local market in positive way. Further, all the significant suppliers are Indian from whom 75% of the major raw materials are procured. Following are some of the resource optimisation initiatives.

A. Cut to length plates at Bogibeel Rail-cum-Road Bridge Project

At the Bogibeel Rail-cum-Road Bridge project, instead of using the readily available standard size plates, about 95 different variants of make-to-order sizes were procured in order to reduce the two-dimensional cutting plans for fabricating the steel superstructure for the bridge. The software generates high-utilization layouts, significantly reducing waste and maximizes productivity.

B. Cut and bend rebars at Mumbai Metro 3

The rebars of prefixed length and definite bends are procured that helps to avoid material wastage due to cutting the rebars.

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C. Tighter tolerances of steel plates for Sawarakuddu Hydro Power Project

At Sawarakuddu Hydro Power Project, steel plates from Essar Steel are procured for construction of steel liner in the pressure shaft and penstock. Manufacturer, Essar Steel, was instructed to manage tighter tolerances on thickness, width and lengths of steel plates. This resulted in huge savings in material rejection.

D. Coupler use for savings

Reinforcement couplers were used at DMRC66, BARC Tarapur and Mumbai Metro Projects helped us to achieve huge reduction in the cost.

Conservation of Energy

HCC is continuing with energy saving measures like usage of Load Sharing System in D.G. plants, APFC (Automatic Power Factor Controller) panels, FCMA (Flux Compensated Magnetic Amplifier) Starter for Main Crusher Motors, Variable Frequency Drive (VFD) Starting System for Ventilation Fans & EOT/ Gantry Cranes and Use of Energy Efficient Motors in Gantry Cranes.

A. Usage of Load Sharing System in D.G. sets

DG Sets of various ratings are provided with synchronized arrangement. Based on the load, the operators switc With this arrangement, the DG loading can be controlled to ensure better productivity.

B. APFC (Automatic Power Factor Controller) panels

As a practice, APFC panels are installed at site electrical installations at strategic locations, in order to capacitor b ends. At construction sites, motor load (i.e. inductive load) is prominent and hence installing power factor correcting devices result in substantial cost savings. Improvement in power factor has following effects:  Reduced reactive current, thus reduction in I2R losses  Reduction in reactive current, which results in lesser IR Voltage drops  Lower expenditure for electricity consumption

C. FCMA (Flux Compensated Magnetic Amplifier) Starter for Main Crusher Motors

Main crusher motors have high ratings due to starting torque requirement. To start a crusher motor, the transformer, DG set and switchgear configuration in conventional systems require very high rating. The use of FCMA starters, the requirement of transformers, DG Set and Switchgear ratings have been lowered in comparison to the conventional system. This indirectly trickles down the electricity consumption.

D. Variable Frequency Drive (VFD) Starting System for Ventilation Fans and EOT/ Gantry Cranes

In certain applications such as ventilation fans and cranes, the motor ratings selected are for the peak requirement, whereas for most of the time it runs at reduced loads. The use of VFD has resulted in reduced electricity consumption at the idle time or at the time when there is lowered load. For

302-4 27 example, during tunnel excavation, VFD plays a vital role in reducing the fan speed / air flow of the ventilation system as per the requirement, thereby reducing power consumption.

E. Use of Energy Efficient Motors in Gantry Cranes

This is a continuous process and all new cranes are procured with Energy Efficient Motors.

F. Use of LED lights and tubes at all the projects

Started using of LED lights and tubes instead of previously used mercury tubes or CFL bulbs at all Projects.

World Water Day

As a proponent of the CEO Water Mandate of the United Nations and WASH (Water, Sanitation and Hygiene) initiative of the World Business Council for Sustainable Development, HCC observes the world water day across all project sites and head office on March 22. on 4 Rs (Reduce, Reuse, Recycle and Replenish) of water management. The theme emphasised on the practices that are presently followed at various project sites.

World Environment Day

The World Environment Day was celebrated across our project sites on June 05, 2018. To mark this day, a communication was sent by the Chairman and Managing Director, Mr. Ajit Gulabchand to all initiatives like Awareness/Trainings to the employees and community around per, Tree Plantation drives, Cleanliness drives and rallies were conducted voluntarily to spread awareness.

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Our Environmental Footprint

Environmental Performance Key Performance Disclosures Unit FY 2018-19 Materials Raw Materials Tons 71411.93 Semi-manufactured Goods or Parts Tons 1312793.13 Associated Materials Tons 9969.49 Energy GJ 306893.56 Total Direct Energy kWh 85248211.46 KL 2.85 Aviation Turbine Fuel GJ 103.54 KL 8393.71 Diesel GJ 306790.02 kWh 41503914.3 Total Indirect Energy (purchased electricity) GJ 149414.09 Greenhouse Gas Emissions

GHG emissions due to direct energy use Ton CO2eq 22740.39

GHG emissions due to indirect energy use Ton CO2eq 34033.21 Ton CO eq/ INR GHG emissions intensity from construction2 2 1.31 Million [Turnover] GHG saved on account of Fly Ash Utilization and ground granulated blast Ton CO eq 7441.16 furnace slag 2 Waste Disposed Solid Hazardous Waste (empty drums) Numbers 217 Liquid Hazardous Waste (used oil) KL 18.4 Non-hazardous Waste (cement bags) Numbers 280000 Non-hazardous Waste (steel scrap) Tons 5900

2GHG emissions intensity has been calculated using a sum of emissions from direct and indirect energy use at our project sites in scope. Scope 3 emissions have not been accounted for. Emission factors for direct energy have been used as per the IPCC Guidelines for GHG Inventories (2006), while the emission factor for indirect energy (i.e. purchased electricity) is taken from the Indian Central E Baseline Carbon Dioxide Emission Database Version 13. Annual turnover of HCC (E&C business) was taken from our Annual Report available on the web-link mentioned in this Report.

Communication on Progress (COP): UN CEO Water Mandate

Management Approach

HCC was the first is an industry partner of the World Economic Forum (WEF). We have adopted 4 R (reduce, reuse, recycle, replenish) approach of water management at project sites. In this 11th Communication on Progress (CoP), we present the efforts made by the company towards propagating water consciousness in FY 2018-19.

Direct Operations

HCC, has a water policy which is being implemented at all project sites. The trained team of water champions deployed across all project sites is responsible for accounting of water withdrawal, the implementation of the 4Rs and water sensitization among all employees.

At each project, initially, water source tagging and utility mapping is carried. Water withdrawal from all sources is monitored.

Batching plants at every project are equipped with sedimentation tanks. The supernatant water is reused for dust suppression. This helps eliminate use of fresh water for the said purpose.

At Bogibeel Rail-cum-Road Bridge Project, Decentralised Waste-Water Treatment System (DWTS) is installed for the treatment of the sewage water which after the treatment is being recycled for gardening and for dust suppression. Wherever possible, roof top water harvesting is done at offices and camp buildings.

This Communication on Progress pertains to the data from the following 17 project sites of the company:

Transport Hydro Electric Projects 1 Ramban Banihal Road (NH44) 11 Punatsangchhu HEP 2 Kolkata Elevated Corridor 12 Kishanganga HEP 3 NH 34 Pkg 3 13 Tehri HEP 4 NH 34 Pkg 4 14 Sawrakuddu HEP 5 Bogibeel Rail Cum Road Bridge Nuclear and special 6 Mumbai Metro Rail Corp Pkg III 15 Rajsthan Atomic Power Project 7 & 8 7 T 48/ 49 Tunnel 16 DGNP (Dry Dock for Indian Navy) 8 Imphal Kangchup Tamenglong Road Project 17 Bhabha Atomic Research Centre, Tarapur 9 Numaligarh Johrahat Road Project 10 Munirka Elevated Corridor Project

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Sr. Description QTY in ML 1 Freshwater withdrawal 509.93 Freshwater use as raw material 256.57 Fresh and desalinated water used for construction activities 183.20 Tracking difference, losses, storage 70 2 Water recycled / reused ( fresh water saving ) 18.65 3 Total water used at HCC sites 528.57 4 Water disposal in natural water bodies after treatment 209.12 5 Net water use at HCC sites 300.81 Consolidated water use efficiency at HCC sites (water reuse/net water use) x 6 6% 100

Domestic Water Management

1 Water consumption for domestic use at officers colonies and worker's camps 440.66 2 Domestic sewage from colonies and w 349.30

Water Used at HCC's site April 2018 - March 2019

Tracking diff.,losses, 1% Water Recycled / storage 4% Reused

Fresh water for domestic use (retrieval) 23% Fresh Water Fresh & desalinated Withdrawal ( Water used for extraction + construction activities procurement) (retrieval) 10% Freshwater use as 49% raw material (non retrieval) 13%

Supply Chain and Watershed Management:

HCC is conscious of watershed management around its project sites. While extracting water from the natural resources, proper monitoring systems are put in place for judicious water utilisation. During times of water scarcity, the local communities are supported by the company by providing drinking water supply. For example, at the Kishanganga Hydro Power Project, HCC has been

303-1, 303-3, 306-1 31 providing drinking water to 5 villages around the project site by purchasing water from the Public Health Engineering Department.

Community Engagement: Rejuvenation of Diversion Based Irrigation System on Mhalungi River

Ashapur, a village located in Sinnar taluka of Maharashtra, had been suffering from acute water scarcity which severely affected cultivation, and fodder availability for the cattle. HCC, with the help of Yuva Mitra, an NGO Based in Sinnar, rejuvenated the diversion based irrigation system which had become defunct due to siltation. This initiative helped to enhance the ground water table and rejuvenate the wells (more than 60 across 135 hectares of farms). This year it helped conserve more than 390 million litres through percolation and irrigation. Thus HCC has maintained water positive status (by way of offsetting) with water index > 1.

This initiative was beneficial for the farmers to extend cultivation seasons and to expand their range of crops. The rejuvenation of canal at Ashapur village proved to be a good example of socio-economic improvement.

Transparency

This chapter serves as Communication on Progress (COP) for reporting period as April 2018 to March 2019. As part of the limited assurance of HCC's Sustainability Report 2018-19, TTC has reviewed the water related performance disclosures as per AA 1000 AS Standard. The assurance process included field visits to the project sites as specified in the assurance statement.

Community Sustainability

Management Approach

HCC remains steadfast on its holistic approach to support the community around. Our CSR The CSR Policy aims at implementing CSR activities in accordance with Schedule VII o f Section 135 o f the Companies Act 2013 and the notified Rules. The CSR Committee reviews the implementation of CSR Policy.

Summary of our CSR initiatives at Project Sites in FY 2018-19

1. HCC supported the wrestling competition organised near the T13 Rail Link Tunnel Project (Jammu & Kashmir) in order to boost the local sports activities. 2. At Numaligarh Jorhat Road Project (Assam), on the request of All Assan Students Union, monetary support for educational purpose was made.

Disaster Relief and Response

As the founder member of the Disaster Resource Partnership (DRP) formed at the World Economic Forum in 2004, HCC ensures that the core strengths and existing capacities of the Infrastructure and Urban Development community are mobilized during and after crisis to reduce suffering and save lives. HCC became a co-founder and regional coordinator of the Disaster Resource Network India in make plans and structures that could become operational in crises.

Disaster relief initiatives undertaken during FY2018-19:

1. Rescue Operation at Kolkata

A portion of the busy Majerhat Bridge, at Alipore in Kolkata on National Highway 117, collapsed on September 04, 2018. The 40+ years old rail over bridge runs over the Sealdah Railway line near the Majerhat Railway station and serves as the main artery connecting the City Centre to Behala and other southern suburbs of Kolkata. Three people lost their lives and more than 25 people were injured in the mishap. Several vehicles commuting on the road were also trapped under the debris.

HCC team engaged in the construction of immediately summoned by the Kolkata Municipal Development Authority (KMDA) and the National Disaster Response Force (NDRF), to assist with the rescue operation. Without any delay a team of 8 officers and 17 workers including Electrical Engineer, Mechanical Engineer, Safety Officers, and Auto Electrician were rushed to the site. The project team also deployed a tyre mounted crane, an earth mover, a mini truck, a camper and cutting sets for the rescue operation. Due to the Metro Rail work being carried out near the mishap area, it was surrounded by under construction buildings, scaffolding and pillars, making the area too narrow for equipment to move freely. In spite of the challenging conditions, HCC team worked relentlessly for three days along with the Kolkata Municipal Development Authority (KMDA) and National Disaster Response Force (NDRF) officials to clear the debris to the extent possible.

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2. Support in relief work after bridge collapse near CST station Mumbai

A foot over bridge near CST railway station collapsed on March 03, 2019 around 7:30 pm, which lead to few casualties and injuries. Immediately after the collapse, the Police sought help from HCC team working on Mumbai Metro Line III project nearby. HCC promptly deployed a team of 11 officers & workers, heavy machinery like cranes, excavators to help local authorities. The team pulled aside the fallen slab, and the blocks that were dangling from the bridge. 4 dumpers were deployed to carry the muck.

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Our Sustainability Performance

GHG emissions due to direct energy use Ton CO2eq 22740.39

GHG emissions due to indirect energy use Ton CO2eq 34033.21 Ton CO eq/ INR GHG emissions intensity from construction3 2 1.31 Million [Turnover] GHG saved on account of Fly Ash Utilization and ground Ton CO eq 7441.16 granulated blast furnace slag 2 Waste Disposed Solid Hazardous Waste (empty drums) Numbers 217 Liquid Hazardous Waste (used oil) KL 18.4 Non-hazardous Waste (cement bags) Numbers 280000 Non-hazardous Waste (steel scrap) Tons 5900

3GHG emissions intensity has been calculated using a sum of emissions from direct and indirect energy use at our project sites in scope. Scope 3 emissions have not been accounted for. Emission factors for direct energy have been used as per the IPCC Guidelines for GHG Inventories (2006), while the emission factor for indirect energy (i.e. purchased electricity) is taken from the Indian Central E Baseline Carbon Dioxide Emission Database Version 13. Annual turnover of HCC (E&C business) was taken from our Annual Report available on the web-link mentioned in this Report.

301-1, 302-1, 305-1, 305-2, 305-4, 305-5, 306-2, 306-4, CRE4 35

Social Performance Key Performance Disclosures FY 2018-19 Total Workforce Workforce by Level of Employment Officers (Senior, Middle, Junior Management) 1386 Others (Short Term Contracts, Trainees etc.) 55 Workmen (Excluding FTC) 18291 Workforce by Type of Contract Permanent Employees 5108 Sub-contract 4946 Piece-rate Workers 8237 Fixed-term Contract 100 Workforce by Gender (excluding Workmen) Male 1385 Female 57 New Employee Hire and Turnover Total Number of New Hires (excluding Workmen) Male 384 Female 2 <30 years 191 30-50 years 161 >50 years 34 Total Number of Employees Leaving Employment (Officers only) Male 515 Female 14 <30 years 173 30-50 years 281 >50 years 75 Return to Work after Parental Leave Number of Employees Entitled (Women) 57 Number of Employees Availed and Returned 1 Number of Retentions 12 Months After Return - Ratio of Basic Salary and Remuneration of Women to Men Senior Management 1 Junior and Middle Management 1 Average Employee Training Man-hours by Level of Employment Officers 5.60 Trainees 26.53 Workers 6.48 Average Employee Training Man-hours by Gender (Trainees included) Male 6.47 Female 1.26 Safety Statistics Man-hours Worked (millions) 60.81 Injuries 9 Fatalities 2 Lost Days 12067 Frequency Rate 0.19 Severity Rate 210.92 Frequency Severity Index 0.09 Total Case Incident Rate (TCIR) 0.08

401-3, 403-2

Independent Assurance Statement (TTC)

102-56

GRI Content Index

GRI Services reviewed that the GRI content index is clearly presented and the references for all disclosures included align with the appropriate sections in the body of the report. GRI Page number(s), direct answers and/or Disclosure Standard URL(s) GRI 101: Foundation 2016 GRI 102: General Disclosures 2016 GRI 102-1 Name of the organization 1 Activities, brands, products, and 1,3 GRI 102-2 services GRI 102-3 Location of headquarters 3 1 (All the projects in progress, refer to GRI 102-4 Location of operations Annual Report P 2-3) https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf GRI 102-5 Ownership and legal form 4 GRI 102-6 Markets served 3 GRI 102-7 Scale of the organization 3 Information on employees and other 15 GRI 102-8 workers GRI 102-9 Supply chain 10, 25 Significant changes to the organization No significant changes GRI 102-10 and its supply chain GRI 102-11 Precautionary Principle or approach Risk Management (10) GRI 102-12 External initiatives 3 GRI 102-13 Membership of associations 7 GRI 102-14 Statement from senior decision-maker 2 GRI 102-15 Key impacts, risks, and opportunities Risk Management (10) Values, principles, standards, and 6 GRI 102-16 norms of behavior Mechanisms for advice and concerns Annual Report Page no 67 GRI 102-17 about ethics https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf GRI 102-18 Governance structure 4 Composition of the highest governance Annual Report P20-25 GRI 102-22 https://hccindia.com/uploads//reports/0_37250200_1 body and its committees 566995792_HCC_Annual_Report_2018-19.pdf GRI 102-23 Chair of the highest governance body 4 Nominating and selecting the highest Annual Report P41,42 GRI 102-24 https://hccindia.com/uploads//reports/0_37250200_1 governance body 566995792_HCC_Annual_Report_2018-19.pdf

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Evaluating the highest governance Annual report P42,26 GRI 102-28 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Effectiveness of risk management Annual Report P44,25 GRI 102-30 https://hccindia.com/uploads//reports/0_37250200_1 processes 566995792_HCC_Annual_Report_2018-19.pdf Annual Report P20-22 GRI 102-35 Remuneration policies https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Annual Report P20-22, 42 GRI 102-36 Process for determining remuneration https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Annual Report P20-22 GRI 102-38 Annual total compensation ratio https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Percentage increase in annual total Annual Report P49 GRI 102-39 https://hccindia.com/uploads//reports/0_37250200_1 compensation ratio 566995792_HCC_Annual_Report_2018-19.pdf GRI 102-40 List of stakeholder groups 8 GRI 102-41 Collective bargaining agreements 15 GRI 102-42 Identifying and selecting stakeholders 8 GRI 102-43 Approach to stakeholder engagement 8 GRI 102-44 Key topics and concerns raised 9 Entities included in the consolidated Annual Report P155,31 GRI 102-45 https://hccindia.com/uploads//reports/0_37250200_1 financial statements 566995792_HCC_Annual_Report_2018-19.pdf Defining report content and topic 1, 38 GRI 102-46 Boundaries GRI 102-47 List of material topics 9 GRI 102-48 Restatements of information No GRI 102-49 Changes in reporting No GRI 102-50 Reporting period 1 GRI 102-51 Date of most recent report Financial Year 2017-18 GRI 102-52 Reporting cycle Annual (1) Contact point for questions regarding 1 GRI 102-53 the report Claims of reporting in accordance with 1 GRI 102-54 the GRI Standards 38, 39, 40, 41, 42, 43, 44, 45 GRI 102-55 GRI content index

GRI 102-56 External assurance Yes. (36,37) Economic performance GRI 201: Economic performance 2016 8 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 23 Board Committees on all the Material Topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf 102-55

Direct Economic Value generated and 23, 24 GRI 201-1 distributed Defined benefit plan obligations and employee benefits (16) GRI 201-3 other retirement plans Financial assistance received from Nil GRI 201-4 government GRI 204: Procurement Practices 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its 9 GRI 103-1 Boundary The management approach and its 25 GRI 103-2 components Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf As HCC has an extensive pan- Indian project footprint, our definition for local sourcing continues to remain nation-wide. Proportion of spending on local GRI 204-1 Almost 100% of the significant suppliers procurement budget at the projects in this reporting period was sourced locally (within India). Environment performance GRI 301: Materials 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 25 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf GRI 301-1 Materials used by weight or volume 34 GRI 302: Energy 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 25 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Energy consumption within the 34 GRI 302-1 organization GRI 302-4 Reduction of energy consumption Conservation of Energy(26, 27)

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GRI 303: Water 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 29 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf GRI 303-1 Water withdrawal by source CEO Water Mandate (30) Water sources significantly affected by No GRI 303-2 withdrawal of water GRI 303-3 Water recycled and reused CEO Water Mandate (30) GRI 305: Emissions 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 25 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf GRI 305-1 Direct (Scope 1) GHG emission 34 Energy indirect (Scope 2) GHG 34 GRI 305-2 emissions GRI 305-4 GHG emissions intensity 34 GRI 305-5 Reduction of GHG emissions 34 Emissions of ozone-depleting GRI 305-6 substances (ODS) No ODS involved in the operations Greenhouse gas emissions intensity CRE4 from new construction and redevelopment activity 34 GRI 306: Effluents and Waste 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 19, 25, 29 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Water discharge by quality and CEO Water Mandate (30) GRI 306-1 destination

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GRI 306-2 Waste by type and disposal method 34 Hazardous wastes are disposed through GRI 306-4 Transport of hazardous waste vendors authorised by government (34) Land and other assets remediated and in need of remediation for the existing HCC activities have not caused any CRE5 or intended land use according to significant land contamination, hence applicable legal designations. there is no need for remediation GRI 307: Environmental Compliance 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 8, 25 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf

Non-compliance with environmental Refer Annual report page number 69 GRI 307-1 laws and regulations https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Social performance GRI 401: Employment 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf New employee hires and employee 15 GRI 401-1 turnover Benefits provided to full-time 16 GRI 401-2 employees that are not provided to temporary or part-time employees GRI 401-3 Parental leave 17, 35 GRI 402: Labour/Management Relations 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf

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No such changes during the reporting Minimum notice periods regarding period. As prescribed under the Industrial GRI 402-1 operational changes period is provided. GRI 403: Occupational Health and Safety 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13, 19 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf

Workers representation in formal joint All our project level health and safety GRI 403-1 management worker health and safety committees have an equal representation committees of management and workers. Types of injury and rates of injury, occupational diseases, lost days, and GRI 403-2 absenteeism, and number of work- related fatalities 20, 35 Percentage of the organization Management Approach(19), HCC operating with verified compliance with complies with ISO certification for Quality, CRE6 an internationally recognized health and Occupational Health & Safety and safety management system. Environment Management systems (3) GRI 404: Training and Education 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Average hours of training per year per 18 GRI 404-1 employee Programs for upgrading employee skills GRI 404-2 Functional, Technical and Safety Training and transition assistance programs Programs (18) Percentage of employees receiving employee benefits (16) GRI 404-3 regular performance and career development reviews GRI 405: Diversity and Equal Opportunity 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13

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Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Diversity of governance bodies and GRI 405-1 employees Diversity and Equal Opportunity (16, 17) Ratio of basic salary and remuneration GRI 405-2 of women to men Diversity and Equal Opportunity (17) GRI 406: Non-Discrimination 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report P 41,42) https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf There was no such incidence reported in Incidents of discrimination and GRI 406-1 reporting period. Zero Tolerance to corrective actions taken Discrimination (14) GRI 408: Child Labor 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management P23-25), Corporate Governance (Annual GRI 103-3 approach Report P41,42) https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Operations and suppliers at significant GRI 408-1 risk for incidents of child labour Zero Tolerance to Discrimination (14) GRI 412: Human Rights Assessment 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 13 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report P41,42) https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf All 386 new hires have undergone Employee training on human rights GRI 412-2 awareness training on Human rights. policies or procedures Diversity and Equal Opportunity (16, 17)

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GRI 413: Local Communities 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 32 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report 41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Operations with local community GRI 413-1 engagement, impact assessments, and development programs 32, 33 GRI 419: Socioeconomic Compliance 2016 GRI 103: Management Approach 2016 Explanation of the material topic and its GRI 103-1 Boundary 9 The management approach and its GRI 103-2 components 8, 32 Board Committees on all the Material topics are formed (refer Annual Report Evaluation of the management GRI 103-3 P23-25), Corporate Governance (Annual approach Report P41,42 https://hccindia.com/uploads//reports/0_37250200_1 566995792_HCC_Annual_Report_2018-19.pdf Non-compliance with laws and regula- GRI 419-1 No significant fines or sanctions were tions in the social & economic area levied on HCC during the reporting period.

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Hindustan Construction Co. Ltd. Hincon House Lal Bahadur Shastri Marg Vikhroli (West) Mumbai 400083 India Tel: +91-22-2575 1000 Fax: +91-22-2577 5732